Mortgage Overpayment Calculator: Save Thousands in Interest
An extra £200 a month against your mortgage. Most people refuse to do the sum because the answer makes the case for ordering takeaways feel obscene.
£200/month overpayment on a £200k 25yr mortgage (4.5%)
| Scenario | Monthly payment | Term | Total interest |
|---|---|---|---|
| No overpayment | £1,111 | 25 years | ~£133,400 |
| With £200/month overpay | £1,311 | ~18 years | ~£94,400 |
| Saving | +£200 | ~7 years off | ~£39,000 saved |
An extra £200 a month finishes the mortgage 7 years early and saves £39k in interest.
Key takeaways
Overpaying on your mortgage can significantly reduce the total interest paid over the life of the loan.
The mortgage overpayment calculator helps you see how much interest you can save and how many years you can cut off your mortgage term by overpaying.
Making overpayments reduces your outstanding capital, which lowers future interest charges and allows more of your monthly payment to go towards reducing the principal.
Using the calculator is simple: enter your mortgage details and the amount you plan to overpay each month to see the benefits.